2 One thing to keep in mind though is that this is only a forecast and not a reliable indicator of future performance, meaning there’s a risk you could potentially end up with less. If you wanted to use this as a guide, you’d need £336,973 in your pension, which could be achieved by investing £517 each month into a Wealthify Pension (with an Original theme and Confident investment style) from 25 years old until early retirement at 55. And with the current state pension, you could retire on £185.15 a week – or about £9,627.80 a year. Having said that about the state pension, it does provide a relatively accurate baseline to work from. Realistically, how much do you need to retire? But there’s a lot of uncertainty around the future of the state pension, and that means predicting how much it might be is very tricky and would be a lot of guesswork. First of all, you won’t be entitled to it for some years if you retire at 55. We deliberately haven’t included the state pension for a few reasons. It’s simple math, but something that has a significant impact on how long you can live off a certain amount. The longer you live for, the more money you need.Retiring any earlier than this would mean you’d likely be eating into your other savings. At 55 you can start drawing money from personal pensions – with 25% of your total pot tax-free. ![]() Debt can really eat into your monthly outgoings, and if you want to retire early then debt and mortgage payments can make this difficult and sometimes even prohibitive. ![]() Which may be nearly 10 years longer than the UK’s average life expectancy and it puts us in the 99 th percentile of the UK population 1, but why not dream?īut why does this all matter? For three reasons: The second assumption is that we’re planning on retiring at 55 and living until we’re 90. The biggest one is that you have no mortgage or debts to pay off. ![]() So, if you get the opportunity to retire before your 60s, you’ll take it! But realistically and financially, how much do you really need to make this happen?īefore we go any further, we’re going to make a few assumptions to create our pension calculations. When would you ideally like to retire? When you’re 68, 70, 75 or are you thinking about clocking out of work for the last time earlier than that? Let’s be honest, most of us aren’t planning on working into our 70s.
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